Financials China Telecom Corporation Limited

Equities

728 CNE1000002V2

Integrated Telecommunications Services

Market Closed - Hong Kong S.E. Other stock markets 04:08:11 2024-05-08 am EDT			5-day change	1st Jan Change
4.33 ^HKD	+1.64%		+1.64%	+15.78%

Apr. 25	Agency bars Chinese telecom carriers from offering US broadband services	RE
Apr. 24	China Telecom Logs Over 7% Profit Growth in Q1	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	232,169	146,451	365,593	362,387	467,705	512,562	-	-
Enterprise Value (EV) ¹	328,918	207,348	349,281	311,076	398,410	446,670	431,083	414,688
P/E ratio	11.5 x	6.96 x	6.83 x	9.04 x	10.3 x	10.9 x	9.96 x	9.3 x
Yield	3.96%	5.79%	8.02%	-	6.86%	6.68%	7.47%	8.3%
Capitalization / Revenue	0.62 x	0.37 x	0.83 x	0.76 x	0.92 x	0.94 x	0.89 x	0.84 x
EV / Revenue	0.88 x	0.53 x	0.79 x	0.65 x	0.78 x	0.82 x	0.75 x	0.68 x
EV / EBITDA	2.81 x	1.74 x	2.82 x	2.5 x	3.11 x	3.11 x	2.88 x	2.68 x
EV / FCF	15.2 x	4.37 x	6.63 x	6.58 x	8.01 x	11.7 x	15.7 x	9.1 x
FCF Yield	6.6%	22.9%	15.1%	15.2%	12.5%	8.55%	6.37%	11%
Price to Book	0.66 x	0.4 x	0.42 x	-	0.7 x	0.8 x	0.78 x	0.76 x
Nbr of stocks (in thousands)	80,932,368	80,932,368	91,507,139	91,507,139	91,507,139	91,507,139	-	-
Reference price ²	2.869	1.810	2.119	2.711	3.399	3.931	3.931	3.931
Announcement Date	3/24/20	3/9/21	3/17/22	3/22/23	3/4/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	375,734	393,561	439,552	474,967	507,843	544,973	575,035	608,002
EBITDA ¹	117,215	118,880	123,912	124,436	128,247	143,663	149,649	154,540
EBIT ¹	29,070	28,640	30,947	41,304	42,569	41,911	44,716	47,125
Operating Margin	7.74%	7.28%	7.04%	8.7%	8.38%	7.69%	7.78%	7.75%
Earnings before Tax (EBT) ¹	27,034	27,387	33,864	35,714	39,204	42,574	46,822	50,551
Net income ¹	20,517	20,850	25,948	27,593	30,446	33,203	36,191	39,018
Net margin	5.46%	5.3%	5.9%	5.81%	6%	6.09%	6.29%	6.42%
EPS ²	0.2500	0.2600	0.3100	0.3000	0.3300	0.3618	0.3946	0.4226
Free Cash Flow ¹	21,700	47,460	52,686	47,270	49,761	38,202	27,459	45,576
FCF margin	5.78%	12.06%	11.99%	9.95%	9.8%	7.01%	4.78%	7.5%
FCF Conversion (EBITDA)	18.51%	39.92%	42.52%	37.99%	38.8%	26.59%	18.35%	29.49%
FCF Conversion (Net income)	105.77%	227.63%	203.04%	171.31%	163.44%	115.05%	75.87%	116.81%
Dividend per Share ²	0.1136	0.1048	0.1700	-	0.2332	0.2626	0.2936	0.3261
Announcement Date	3/24/20	3/9/21	3/17/22	3/22/23	3/4/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2020 S2	2021 S1	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 S1	2024 S2
Net sales ¹	185,246	193,803	199,758	219,237	110,311	220,315	119,629	122,690	242,319	118,663	120,466	239,129	-	130,076	260,664	123,590	126,740	249,164	273,294	265,650
EBITDA ¹	53,928	63,154	55,726	66,348	27,564	57,564	32,361	37,487	69,848	30,610	29,901	60,511	-	39,472	73,300	32,302	33,530	-	-	-
EBIT ¹	9,126	18,978	9,662	21,251	2,693	9,696	-	14,001	23,113	-	3,110	10,314	-	15,506	25,508	8,329	5,838	15,375	26,954	13,100
Operating Margin	4.93%	9.79%	4.84%	9.69%	2.44%	4.4%	-	11.41%	9.54%	-	2.58%	4.31%	-	11.92%	9.79%	6.74%	4.61%	6.17%	9.86%	4.93%
Earnings before Tax (EBT) ¹	8,516	18,246	9,141	23,415	-	10,449	-	-	-	-	3,883	11,789	-	-	-	8,834	13,025	-	-	-
Net income ¹	6,608	13,949	6,901	17,743	2,621	8,205	7,223	11,068	18,291	6,252	3,050	9,302	-	12,169	20,153	6,948	3,345	-	-	-
Net margin	3.57%	7.2%	3.45%	8.09%	2.38%	3.72%	6.04%	9.02%	7.55%	5.27%	2.53%	3.89%	-	9.36%	7.73%	5.62%	2.64%	-	-	-
EPS	0.0780	0.1720	0.0880	0.2200	-	0.0900	-	-	-	-	-	0.1000	0.0900	0.1300	0.2200	-	-	0.1100	0.2400	0.1200
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	3/24/20	8/18/20	3/9/21	8/10/21	3/17/22	3/17/22	4/20/22	8/16/22	8/16/22	10/20/22	3/22/23	3/22/23	4/20/23	8/8/23	8/8/23	10/20/23	3/4/24	3/4/24	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	96,749	60,897	-	-	-	-	-	-
Net Cash position ¹	-	-	16,312	51,311	69,295	65,892	81,479	97,874
Leverage (Debt/EBITDA)	0.8254 x	0.5123 x	-	-	-	-	-	-
Free Cash Flow ¹	21,700	47,460	52,686	47,270	49,761	38,202	27,459	45,576
ROE (net income / shareholders' equity)	5.9%	5.82%	6.55%	6.41%	6.9%	7.52%	7.94%	8.3%
ROA (Net income/ Total Assets)	3%	2.94%	3.51%	-	3.71%	3.94%	4.24%	4.52%
Assets ¹	683,262	709,111	738,666	-	821,746	842,299	852,658	863,358
Book Value Per Share ²	4.360	4.490	5.080	-	4.840	4.900	5.020	5.200
Cash Flow per Share ²	1.390	1.630	1.630	-	1.510	1.480	1.530	1.580
Capex ¹	77,600	84,800	84,847	89,949	88,862	94,847	93,970	92,426
Capex / Sales	20.65%	21.55%	19.3%	18.94%	17.5%	17.4%	16.34%	15.2%
Announcement Date	3/24/20	3/9/21	3/17/22	3/22/23	3/4/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for China Telecom Corporation Limited

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

3.931 CNY

Average target price

5.015 CNY

Spread / Average Target

+27.60%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Integrated Telecommunications Services

	1st Jan change	Capi.
CHINA TELECOM CORPORATION LIMITED	+15.78%	71.03B
CHINA MOBILE LIMITED	+8.18%	196B
VERIZON COMMUNICATIONS	+4.27%	165B
DEUTSCHE TELEKOM AG	-0.46%	116B
NIPPON TELEGRAPH AND TELEPHONE CORPORATION	-2.44%	92.42B
AMÉRICA MÓVIL, S.A.B. DE C.V.	+5.46%	61.18B
SAUDI TELECOM COMPANY	-7.18%	49.84B
CHARTER COMMUNICATIONS, INC.	-31.05%	38.6B
EMIRATES TELECOMMUNICATIONS GROUP COMPANY	-15.78%	38.26B
BCE INC.	-12.00%	30.57B

Other Integrated Telecommunications Services